The S&P 500undefined continued its bullish run higher late last week following a strong price action reversal pattern on Wednesday. The index is nearing key long-term resistance levels that are also all-time highs, so it's best to wait and see how it reacts at these levels before making further decisions. Still, the trend is upward, so our overall approach right now is to look to buy on pullbacks to support levels. We remain bullish on the S&P 500 this week as long as it remains above the key support zone from 2040 to 2060.
Crude oil prices (West Texas Intermediate) fell to less than $46.00 a barrel late last week as the weakness continued below the key resistance level at $51.65. As long as crude oil prices are contained below the recent highs at $51.60 a barrel, the view is to look to sell on strength. Traders ideally should wait for a sell signal on daily or four-hour chart to confirm an entry.
Gold remains in a very strong uptrend. We are still very bullish on this market. As you can see in the chart below, last Friday prices recovered from intraday losses after falling down into the eight- to 21-day exponential moving average layer. They ended the day higher, forming a large bullish pin bar reversal signal. We are looking to be buyers of gold this week to get long, in line with the overall uptrend.
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned